Build Your Trading System in 6 Steps

In this section we’ll give you a rough picture of what a trading system should look like. This should give you an idea of what you should be looking for when you develop your own forex trading system.

Trading Setup

Build Your Forex Trading System

 

Trading Rules

Entry Rules

Enter long if:

  • The 5 SMA crosses above the 10 SMA and both Stochastic lines are heading up (do not enter if the Stochastic lines are already in the overbought territory)
  • RSI is greater than 50

Enter short if:

  • The 5 SMA crosses below the 10 SMA and both Stochastic lines are heading down AND (do not enter if the Stochastic lines are already in oversold territory)
  • RSI is less than 50

Exit Rules

  • Exit when the 5 SMA crosses the 10 SMA in the opposite direction of your trade OR if RSI crosses back to 50
  • Exit when trade hits stop loss of 100 pips

Okay, let’s take a look at some charts and see this baby in action…

Save your progress by signing in and marking the lesson complete!

  1. How To Create A Mechanical Trading System
  2. Design Your Trading System in 6 Steps
  3. Build Your Trading System in 6 Steps
  4. The "So Easy It’s Ridiculous" Trading System
  5. Summary: Creating Your Own Mechanical Trading System